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VladimirAG [237]
3 years ago
13

Why are junk bonds more popular during a bear market?

Business
2 answers:
prisoha [69]3 years ago
7 0

Junk bonds are popular during a bear market because they pay higher interest. Junk bonds also provide more upside gain after a bear market. Lastly, junk bonds are like stocks.

Dominik [7]3 years ago
6 0
Many times junk bonds are a high risk bond, but are also a high return. They are more popular during a bear market for this reason only. Sine they have a high return it compensates for the high risk. The junk bonds can also help a persons personal portfolio. Junk bonds also issues with a 10 year term or less. A bear market is when there is a steady drop or stagnation in the market over a period of time. 
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